Best Advice I Can Give a New Property Investor
I have been a property investor now for the best part of a decade. During that time I have learned much about how to invest in property and if I had to select the top hints and tips I have picked up over that time, these would be them.
1. Take advice
Much of what I have learned as a property investor has come from seminars, property courses and mentorship programmes. Property investing advice from those who know the industry well is invaluable and you should take every opportunity to learn from the experts.
2. Know your market
Always make sure you know as much as you can about the location of your property, the market, rental demand, travel links and anything else that might affect future saleability and rentability.
3. Be patient
Property prices in the UK generally rise…in the long term. Investing in properties should be considered a medium to long term strategy and you should expect to be in the business for the long haul, not to make a quick buck.
4. Look after your tenants
Good tenants are, effectively, good customers of your business. Treat them well by undertaking maintenance and repairs immediately, being fair with rent increases and allowing them to enjoy their home without interference.
5. Have an exit strategy
It is all very well building up a property portfolio, but you should have some idea of what your long term plan is. Are you keeping all the properties long term for income, selling them one by one or looking to sell them all in one go?
6. Listen to professionals
In addition to the advice of property experts, investing in properties is likely to be more profitable if you also take advice of solicitors, mortgage experts and tax advisors. Good brokers can save you a fortune in finance costs, tax advisors can help you reduce your tax liability and solicitors can ensure you encounter no boundary, tenants or other property problems.
7. Diversify
Anyone with an investment portfolio will tell you that it is vital that you diversify your investments into low, medium and high risk. It’s the same for property – buying lots of properties on the same street is riskier than buying property in various diverse locations. Be careful not to put all your eggs in one basket.
8. Be professional
A successful property investor treats their property business exactly as any other proprietor treats theirs. Make sure your records and books are always up to date, that you keep your paperwork in order and that you carry yourself in a professional fashion with estate agents, tenants and solicitors.
